Alberta Corporation Uses a Job-Order Costing System

Essay

Alberta Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
(1) Direct materials requisitioned for use in production, $170,000(2) Indirect materials requisitioned for use in production, $11,000(3) Direct labor wages incurred, $105,000(4) Indirect labor wages incurred, $103,000(5) Depreciation recorded on factory equipment, $38,000(6) Additional manufacturing overhead costs incurred, $63,000(7) Manufacturing overhead costs applied to jobs, $200,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $450,000Required:
a. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts.
b. Determine the underapplied or overapplied overhead for the month.